| Organizer : | Bank of Industry (BOI) |
| Website : | Visit Website |
| Target Region : | Nigeria |
| Sector : | Sector agnostic |
| SDG : | All |
The Youth Entrepreneurship Support (YES) Programme is BOI’s effort at addressing the worrisome phenomenon of youth unemployment in Nigeria by building the capacity of the youths and funding their business ideas. The YES programme is aimed at equipping young people with the requisite skills and knowledge to be self-employed by starting and managing their own businesses.
Participants will be drawn from young aspiring entrepreneurs between the ages of 18 and 35 years, with innovative ideas who must have a minimum educational qualification of an Ordinary National Diploma (OND).
COMPONENTS OF THE YES-PROGRAMME
The YES-Programme is comprised of the following components:
- Eight (8) weeks extensive online Entrepreneurship and Business Management training which has the ability to test participants’ understanding and track their progress.
- Five (5) days in-class Entrepreneurship and Business Management training covering the following five (5) modules:
- The business idea (value proposition & competition analysis)
- Business model (how will the business make money)
- Sales and marketing
- Running a successful business (ethics, compliance, operations, etc.)
- Financial plan
- Technical skills training in partnership with the various technical training and vocational institutes in the country.
- Financing of the businesses by BOI under its SME Cluster initiative in consonance with the United Nations Economic Commission for Africa’s Commodity-based Industrialisation Strategy.
PROGRAMME OBJECTIVES
The YES-Programme has the following broad objectives:
- To create an interactive learning platform to train young aspiring entrepreneurs in Entrepreneurship, Business Management and Technical Skills that will ultimately translate into improved efficiency and productivity.
- To kindle the entrepreneurial spirit of the youths.
- To act as an incubation center where business ideas are nurtured to their full potential as well as entrenching global best practices by inculcating a culture of innovation-driven entrepreneurship and ethics in the programme participants.
- Promotion of self-employment among graduates of institutions of higher learning, thereby changing their job-seeking mindset.
- To deepen financial inclusion by de-risking the young aspiring entrepreneurs and making them eligible for small business loans to be provided by BOI.
OPERATIONAL FRAMEWORK
10,000 online applications will be solicited nationwide, out of which 2,000 would be selected for the online training component of the YES programme.
Applicants will register online and will be expected to provide accurate answers to questions. Such answers count towards determining the suitability of the applicants for the training programme. Only the top 1,200 online participants will qualify for the in-class training programme annually.
The in-class trainings will be delivered by BOI accredited partner Training Institutes and shall take place on a bi-annual basis at selected centres spread across the six geo-political zones. Hence, 600 participants shall be trained at the designated locations bi-annually.
The final evaluation and selection of the candidates that will qualify for funding under the YES-Programme, will be by a seven-man panel made up of senior management staff of the Bank and other eminent members made up of successful entrepreneurs, professionals, retired bankers, etc.
| RATIONALE | · The scheme will provide the young aspiring entrepreneurs the opportunity to access funds for the actualisation of their business ideas, as well as the expansion/modernization of their existing businesses. |
| TARGET MARKET/ CRITERIA | This product will be available to:i. Young Nigerian aspiring entrepreneurs of ages 18 – 35 years with a minimum educational qualification of OND, who have been trained under the BOI Entrepreneurship Capacity Building Programme (as stipulated in the Training Programme Framework above). ii. National Youth Service Corps (NYSC) members that have gone through the NYSC’s Skills Acquisition and Entrepreneurship Development Programme (SAED). iii. Specific areas of coverage are the 35 SME clusters |
| SCHEME PARTNERS | The Bank will collaborate with the following: Pan Atlantic University Enterprise Development Centre (PAU-EDC), Kaduna Business School (KBS), Leap Africa, Prinsult Co. Ltd, ValueCon Business Services, VSL Consult Ltd, Empretec Nigeria Foundation, Fate Foundation and AfterSchool Graduate Development Centre to facilitate the Entrepreneurship Capacity Building programme.National Youth Service Corps (NYSC) – To refer interested corps members to BOI for consideration under the YES-Programme funding, subject to meeting the eligibility criteria of the programme. The referral letter should be signed by officers not below the level of a Director. Partner technical skills training institutions like as listed against the 35 SME clusters contained in Appendix I. SME-Friendly Commercial Banks – To provide the working capital. |
| PROJECTED IMPACT | The fund shall be deployed to support the establishment and/or expansion of an estimated 5,000 enterprises promoted by Nigerian youths across the country. The scheme is expected to create a minimum of 20,000 direct jobs and 30,000 indirect jobs annually, totaling 60,000 jobs. |
| PROGRAM LIMIT | |
| SINGLE OBLIGOR LIMIT | Up to |
| APPROVAL LIMIT | In line with the Bank’s approval limit. |
| PRICING | Interest Rate: 9% per annum.Fees: 1% Processing fee. |
| TENOR | 3 – 5 years. |
| MORATORIUM | Six (6) months from date of Loan Disbursement. |
| SECURITY | Security for the facility would be combination of:I. Debenture over the assets of the company or specific charge over the equipment (present and future).II. Deposit of original NYSC certificate and higher educational certificate (Ordinary National Diploma, Higher National Diploma or University Degree) with BOI. This will be subject to the certificate being certified by Background Check International (BCI).Background Check International, (BCI), Incorporated July 21, 2004 is the arrowhead of the background check industry in Nigeria that specializes in full-service Background Checks, Employment Screening, Claims Verification, Risk Assessment/Management, Vital Documents Verification and Investigative Due Diligence Services.(Acceptable alternatives to Degree/HND certificates: Final Statement of Results, Success Letter, Testimonial or other verifiable evidence of course completion.)III. Two (2) external guarantors acceptable to BOI who must belong to any of the following categories:a. Senior Civil Servant (Level 7 and above).b. Bankers (not below the level of Banking Officer) and must have been confirmed by current employer.c. Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.d. Senior Staff of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers) etc.e. Elected public servants/administrators.f. Reputable entrepreneurs with on-going entities and registered business names.g. Clergy men.The guarantees must be supported by Notarized Statement of Net worth acceptable to BOI.Note:For established borrowers requesting for an expansion, security requirement (II) could be waived. |
| FUNDING STRUCTURE | LoanUp to 100% of investment and/or up to 50% working capital need should be allowed on case by case basis.{Ideally, loan component of 90% (maximum) and equity contribution of not less than 10% by the beneficiary}. |
| DISBURSEMENT | Term Loan:50% advance payment to equipment suppliers and payment of the balance only after satisfactory delivery and installation of the equipment. RMD to issue a letter of undertaking for the payment of the balance. However, full cash payment can be made in advance where items of equipment are to be bought from the likes of Cash n Carry, Shoprite, Jumia etc.Working Capital:50% of loan amount, to be disbursed after successful installation and testing of the equipment. |
| REPAYMENT SOURCE | From proceeds of the operation |
| LOAN REPAYMENT MODE | Monthly by direct payment into BOI’s account or by post-dated cheques. |
